CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
51.75 USD
-0.66 (-1.26%)
51.86 USD
+0.11 (+0.21%)
CARR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. CARR has a medium profitability rating, but doesn't score so well on its financial health evaluation. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
CARR had a positive operating cash flow in the past year.
CARR had positive earnings in each of the past 5 years.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CARR (10.46%) is better than 70.73% of its industry peers.
CARR has a better Return On Equity (27.45%) than 82.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.09%, CARR is doing worse than 73.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 12.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
Looking at the Profit Margin, with a value of 18.05%, CARR belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
CARR's Profit Margin has improved in the last couple of years.
CARR's Operating Margin of 11.00% is in line compared to the rest of the industry. CARR outperforms 46.34% of its industry peers.
CARR's Operating Margin has declined in the last couple of years.
CARR's Gross Margin of 27.36% is in line compared to the rest of the industry. CARR outperforms 41.46% of its industry peers.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
CARR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CARR has been reduced compared to a year ago.
2.2 Solvency
CARR has an Altman-Z score of 2.41. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.41, CARR is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
The Debt to FCF ratio of CARR is 8.45, which is on the high side as it means it would take CARR, 8.45 years of fcf income to pay off all of its debts.
CARR's Debt to FCF ratio of 8.45 is on the low side compared to the rest of the industry. CARR is outperformed by 63.41% of its industry peers.
CARR has a Debt/Equity ratio of 0.78. This is a neutral value indicating CARR is somewhat dependend on debt financing.
CARR has a worse Debt to Equity ratio (0.78) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.57
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CARR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, CARR is doing worse than 87.80% of the companies in the same industry.
CARR has a Quick Ratio of 1.14. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
CARR's Quick ratio of 0.75 is on the low side compared to the rest of the industry. CARR is outperformed by 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
Measured over the past years, CARR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.27% on average per year.
Looking at the last year, CARR shows a very negative growth in Revenue. The Revenue has decreased by -22.93% in the last year.
CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.86% yearly.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
CARR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.62 indicates a rather expensive valuation of CARR.
The rest of the industry has a similar Price/Earnings ratio as CARR.
Compared to an average S&P500 Price/Earnings ratio of 25.65, CARR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.74, CARR is valued correctly.
CARR's Price/Forward Earnings ratio is in line with the industry average.
CARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 16.74 |
4.2 Price Multiples
60.98% of the companies in the same industry are cheaper than CARR, based on the Enterprise Value to EBITDA ratio.
CARR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.21 | ||
| EV/EBITDA | 14.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y5.08%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.79%.
The stock price of CARR dropped by -20.63% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.41. CARR pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, CARR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.56% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP18.56%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
51.75
-0.66 (-1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.71%
Ins Owners6.03%
Ins Owner Change1.31%
Market Cap44.04B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts76.88
Price Target74.11 (43.21%)
Short Float %1.41%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-7.23%
PT rev (3m)-13.24%
EPS NQ rev (1m)-21.32%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 16.74 | ||
| P/S | 2 | ||
| P/FCF | 31.21 | ||
| P/OCF | 23.31 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.78 |
EPS(TTM)2.78
EY5.37%
EPS(NY)3.09
Fwd EY5.97%
FCF(TTM)1.66
FCFY3.2%
OCF(TTM)2.22
OCFY4.29%
SpS25.92
BVpS17.05
TBVpS-9.08
PEG (NY)N/A
PEG (5Y)0.92
Graham Number32.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.41 |
F-Score5
WACC8.85%
ROIC/WACC0.57
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 3 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 18.62 and the Price/Book (PB) ratio is 3.04.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -2.27% in the next year.